Methods and Applications of the Allocation of Network Costs (NET-ALLOK))

Department(s)/ Research Infrastructure
Energy, Transportation, Environment
Project Status
Current Project
Project Duration
since/from 2017 to 2020
Commissioned by
Federal Ministry for Economic Affairs and Energy
In Cooperation with
Frankfurt Institute for Advanced Studies
Project Manager
Alexander Zerrahn
Project Team/Contacts at DIW Berlin

The goal of this research project is to investigate the current and future usage of the electricity transmission grid in the context of the energy transformation. To this end, the project develops methods to allocate short- and long-term network costs based on the individual network usage. Specifically, it proposes algorithms for power flow allocation and carries out a systematical assessment and comparison. The algorithms will be made freely available as a software package in an open model of the power system. Based on these flow-allocation algorithms, the project develops and evaluated methods for the allocation of network costs. These allocation schemes will be implemented into existing models of the German and European electricity markets and networks in order to investigate their implications the short-term operation and on the long-term investment decisions of market participants.